LMO and AEO

HRSDC is authorized, under subsection R203(2) of the Immigration and Refugee Protection Regulations, to issue an LMO upon request from CIC or CBSA officers, or from an employer.

Employers make a job offer to a foreign worker and request a Labour Market Opinion from Service Canada by submitting an application (online, by mail or fax, or in person at a Service Canada Centre). Employers then inform the foreign worker of the results of the Labour Market Opinion assessment.

For administrative purposes, the employer must provide a copy of the LMO confirmation letter to the Foreign National (FN), as CIC and CBSA require a copy to process a work permit application, except where an LMO exemption applies. HRSDC’s Foreign Worker System (FWS) also interfaces with CIC systems to provide CIC and CBSA with electronic details about the job offer and the FN associated with the LMO confirmation letter.

It is important for CIC and CBSA to be able to link a FN to a specific LMO confirmation letter in order to prevent FNs from fraudulently identifying themselves as recipients of a genuine job offer from a Canadian employer.

In order to respond to this privacy concern, as of April 1, 2011, HRSDC implemented a change to their FWS that no longer allows the name of a FN to be included in an LMO confirmation letter.

However, LMO confirmation letters related to the Live-in Caregiver Program (LCP) and AEO will continue to show the name of the FN.

HRSDC continues to share the names of FNselectronically with CIC and CBSA through the FWS interface for the purposes of administering the Temporary Foreign Worker Program.

CIC and CBSA officers will only be able to verify a FN’s link to the LMO via an Employment Validation search in both Global Case Management System and Field Operations Support System.

Additional changes

A release to HRSDC’sFWS scheduled for the week of July 9, 2011 will include:

The ability to generate and print a separate annex containing the names of the FNs selected by the employer, for their convenience. This document will be intended only for the employer’s use and records. This does not apply to confirmation letters related to the LCP and AEO. CIC and CBSA officers will still be required to rely on electronic systems to confirm the authenticity of the FN’s job offer.

LMO confirmation letter aspect improvements allowing CIC and CBSA officers to print the system file in bold and in a larger font to ensure legibility.

HRSDC will be updating its website to inform employers of these changes.

The decision to issue a work permit rests with Citizenship and Immigration Canada (CIC). Not all positions on positive LMOs result in the issuance of a work permit: on average 50" of positive LMOs obtain a work permit.

In addition, there is an average delay of 104 days between the decision date and the date on which the TFW obtains a work permit and/or enters Canada. (2012 year)

Steps to Hire Temporary Foreign Workers

In almost all cases, foreign workers must have a valid work permit to work in Canada. When hiring a foreign worker, you, the employer must generally :

Once HRSDC/Service Canada approves the job offer, send a copy of the HRSDC/Service Canada LMO confirmation letter to the foreign worker.

Inform the foreign worker to apply for a work permit from Citizenship and Immigration Canada (CIC).

Next, CIC decides whether the foreign worker will get a work permit according to the requirements to work and reside temporarily in Canada.

A LMO may be revoked prior to the issuance of a work permit under the following circumstances:

The application included false or misleading information; or

New facts come to light subsequent to the date of the issuance of the opinion that would have affected the assessment of the application and that, in turn, change the opinion that the employment of the foreign national would likely have a neutral or positive effect on the labour market in Canada; or

The opinion was based on a mistake as to some material fact.

The revocation of a LMO decision is based on reliable documented evidence that confirms that the new information or altered circumstances would have had an impact on the assessment of the six factors listed under section 203(3) of the Immigration and Refugee Protection Regulations.

When a positive LMO decision is replaced with a negative decision, employers have to submit a new LMO application before they can hire temporary foreign workers.

Special Conditions:

Under the Immigration and Refugee Protection Act (IRPA), there are special cases when you do not need an HRSDC/Service Canada Labour Market Opinion to hire a foreign worker, and/or the foreign worker may not need a Citizenship and Immigration Canada (CIC) work permit.

Labour Market Opinion Assessment Criteria

You will find below, a description of the factors that Human Resources and Skills Development Canada (HRSDC)/Service Canada takes into consideration when assessing an application for a Labour Market Opinion (LMO) to hire a temporary foreign worker. It is important that you read the following pages that describe the conditions you must meet in order to receive a positive or neutral LMO. Applications that are filled incorrectly will delay processing times.

whether the entry of the foreign worker is likely to affect the settlement of a labour dispute.

Citizenship and Immigration Canada (CIC) may also have additional criteria when issuing work permits to foreign workers in regulated occupations.

A LMO may be revoked prior to the issuance of a work permit under the following circumstances:

The application included false or misleading information; or

New facts come to light subsequent to the date of the issuance of the LMO, that would have affected the assessment of the application and that, in turn, change the opinion that the employment of the foreign national would likely have a neutral or positive effect on the labour market in Canada; or

The opinion was based on a mistake as to some material fact.

The revocation of a LMO decision is based on reliable documented evidence that confirms that the new information or altered circumstances would have had an impact on the assessment of the six factors listed under section 203(3) of the Immigration and Refugee Protection Regulations.

When a positive LMO decision is replaced with a negative decision, employers have to submit a new LMO application before they can hire temporary foreign workers.

In most cases, an employer must obtain a Labour Market Opinion (LMO)—which supports the work permit application. An LMO is the opinion provided by Human Resources and Skills Development Canada (HRSDC)/Service Canada to the officer that enables the officer to determine whether the employment of the foreign worker is likely to have a positive or negative impact on the labour market in Canada.

People in the following categories need a work permit but do not need an LMO from HRSDC.

Workers covered under international agreements
Professionals, traders, investors and business people coming to Canada to work under certain international agreements.

Participants in exchange programs
People whose employment in Canada will provide similar employment to Canadians abroad, such as participants in youth exchange programs, teacher exchange programs or other reciprocal programs.

Spouses

Spouses and common-law partners of certain foreign students who are studying full-time.

Workers, their spouses/common-law partners or their dependants who are eligible for a work permit through an active pilot project
Through agreements between the Government of Canada and provincial/territorial governments, some workers, as well as their spouses, common-law partners and dependants, may be eligible for a work permit through an active pilot project without requiring an LMO. These temporary initiatives are designed to attract particular workers that the province or territory needs.Find out if you are eligible to come to Canada through a pilot project.

Workers nominated by a province for permanent residence
A person who has been nominated by a province for permanent residence and has a job offer from an employer based in that province.

Entrepreneurs and intra-company transferees
Some types of entrepreneurs, workers transferring within a company, and other types of workers who will provide significant benefit to Canadians or permanent residents by working in Canada.

Academics and students
Certain academics and students.

Co-op students
Foreign students who are studying in Canada and who need to do co-op work placements as part of their program of study.

Religious workers
People doing charitable or religious work.

Others
Certain people who need to support themselves while they are in Canada for other reasons such as the refugee determination process.

Please note that the Skilled Worker can apply directly to CIC for permanent residency (Step 4) and can gain additional points for having a permanent job offer from you if he/she already holds a work permit that

The following steps may apply to you if you are interested in:

Hiring a Skilled Worker for a permanent position in your company; and

Ensuring that the worker is allowed to work in Canada before receiving his/her permanent resident visa; and

Tell the worker to include your written permanent job offer and a copy of the CIC work permit with the Skilled Worker application, along with other documentation required by CIC. The application is point-rated and these documents improve the Skilled Worker's score and the opportunity to receive a permanent resident visa.

Grant points under the "Arranged Employment" in Canada and review all other Skilled Worker criteria;

Give the Skilled Worker a permanent resident visa.

** Note

Please note that the Skilled Worker can apply directly to CIC for permanent residency (Step 4) and can gain additional points for having a permanent job offer from you if he/she already holds a work permit that:

Is valid at the time of the application and was originally issued by CIC based on a positive HRSDC labour market opinion (including national opinions like the Canada Research Chairs program); or

Is valid at the time of application and was originally issued by CIC based on an international trade agreement (e.g. NAFTA) or an economic benefit exemption.

Immigration Note

On its own, a permanent job offer does not allow a Foreign Worker to immigrate to Canada. Before a Foreign Worker can become a permanent resident, they must :

Concurrent Processing (of your LMO by Service Canada and your Work Permit by Citizenship and Immigration Canada)

Very often temporary foreign workers (TFW) run into a situation like this one:

Their employer promised to apply for a new LMO before their current Work Permit expires, days pass by and employer does not fulfill their promise and TFW find themselves in the situation that their Work permit is just to expire (or has already expired and new positive LMO has not arrived yet.

What can a foreign worker do in that situation?

Temporary Foreign Workers can apply for Work Permit even though their employer has not secured an LMO for them (given that the employer has sent the LMO application to Service Canada) and if application for new Work Permit is done within 2 weeks before the expiry of the current Work Permit CEC will put that new Work Permit application on hold for two months waiting for foreign worker and their employer to obtain positive LMO.

"Since officers must verify the expiry date of the LMO before processing a work permit application, concurrent processing—the processing of a work permit application that is pending receipt of a valid LMO—in most circumstances cannot be permitted.

Exception: For inland processing, the concurrent processing option will only be allowed for foreign nationals whose work permits will be expiring within two weeks.

The foreign national must provide CPC-Vegreville proof of a valid job offer, as well as proof that the employer has submitted a request to Service Canada for a new LMO. The application will be initialized and the processing fee will be applied. Applications will be held by CPC - Vegreville for two months (possibly more if a Quebec CAQ is required), after which a determination regarding the work permit will be made."

TFW applications received with an expired LMO will be refused as per R203 of the IRPR. Since officers must verify the expiry date of the LMO before processing a work permit application, concurrent processing in most circumstances, or the processing of aWP application that is pending receipt of a valid LMO, can no longer be allowed for cases in-Canada or overseas.

For inland processing, the concurrent processing option will only be allowed for foreign nationals whose work permits will be expiring within two weeks at the time of application. They must provide proof of a valid job offer, as well as proof that the employer has submitted a request to Service Canada for a new LMO. Applications will be initialized and the processing fee will be processed. Applications will be held for two months from the date of receipt, after which a determination to either refuse or approve the work permit will be made.

In old days it was possible to apply for Work Permit without an LMO at any time, now it's not - see here).

For long time people believed CIC would ALWAYS wait for 2 months for you to submit LMO however (in most cases) this is not possible any more.

If you already applied for for Work Permit without LMO enclosed call 1-888-242-2100and ask them how can you send them a job offer letter from your employer and proof that your employer applied for an LMO.

In addition to the standard requirements to apply for a labour market opinion (LMO) under each stream of the Temporary Foreign Worker Program (TFWP), Human Resources and Skills Development Canada (HRSDC)/Service Canada will also evaluate the following criteria starting April 1, 2011:

All employers must use the new LMO application form specific to each program stream, and provide:

an explanation of how hiring a temporary foreign worker (TFW) meets the employment needs of the employer; and

a signed statement attesting that the employer will abide by the Program requirements.

When applying for an LMO, all new employers to the TFWP will be required to provide a copy of their business licence or permit. Should an employer not be required by the municipality to obtain a licence or permit to operate, the documents listed below may be provided instead:

CRA documents, including: T4 Summary of Remuneration Paid, Schedules 100 and 125 of the T2 Corporation Income Tax Return, T2125 Statement of Business or Professional Activities;

attestation by a lawyer, notary public or chartered accountant confirming that the employer exists and the type of business the employer operates.

Upon request, returning employers may also be asked to submit any or all of the documents listed above.

The genuineness of the job offer made to the TFW will be assessed based on whether the:

employer is actively engaged in the business in which the job offer is being made;

job offered to the TFW meets the employment needs of the employer, and is consistent with the type of business the employer is engaged in;

employer can fulfil the terms and conditions of the job offer; and

employer, or the third party representative acting on behalf of the employer, is compliant with the relevant federal-provincial/territorial employment and recruitment legislation.

All returning employers must demonstrate that they have met the terms and conditions of employment set out in previous LMO confirmation letters and annexes (if applicable). In addition, some employers may be required to submit documentation to support a more detailed employer compliance review (ECR), including any or all of the following documents:

If it appears that employers did not fully respect the terms and conditions of employment set out in the LMO confirmation letters and annexes (if applicable), the employer will have the opportunity to provide a rationale. In this case, HRSDC/Service Canada will work with the employer to implement the appropriate corrective action, which may include providing compensation to the TFW. Employers may be found non-compliant if they refuse to provide a rationale and/or provide only partial compensation to the TFW.

If the employer is found to be non-compliant:

HRSDC/Service Canada may issue a negative LMO and revoke all positions on confirmed LMOs for which work permits have not yet been issued by Citizenship and Immigration Canada (CIC).

CIC may deem the employer ineligible to hire TFWs for two years. The employer’s name, address and period of ineligibility may also be published on a list of ineligible employers posted on CIC Web site.

The Temporary Foreign Worker (TFW) Web Service was introduced as a way to improve the Temporary Foreign Worker Program so that it can better meet labour market demands, reduce red tape and labour market opinion (LMO) application processing times.

At the present time, the Web Service is not available to employers applying for an Arranged Employment Opinion (AEO), or for an LMO under the Seasonal Agricultural Worker Program (SAWP) or the Live-in Caregiver Program.

Advantages of the Web Service

Once an employer or an approved third-party representative has been deemed eligible for the TFW Web Service, the user will have the opportunity to:

have an online account where they can update their company profile information (e.g. address, phone number, name of contact)

complete and submit online LMO applications

create and assign secondary representative accounts for employees to assist with completing the applications, as required

attach files instead of mailing the required documentation to Service Canada

receive emails from Service Canada (e.g. immediate acknowledgement that the LMOapplication has been received, or request to provide missing documentation, if applicable);

view the status of their LMO applications

obtain copies of LMOs

To Register

The registration guides explain the Administrator and Primary Representative roles and responsibilities within the Web Service. These guides also provide the best scenario to organize a business with multiple office locations. As a result, employers and approved third-party representatives should review the applicable accompanying guide before submitting the completed and signed registration form to the appropriate Service Canada Centre.

Once employers and approved third-parties have been deemed eligible for the Web Service, Service Canada will create an online account for each system user.

NOTE:
Users cannot have access to the Web Service until they receive a confirmation letter from Service Canada which will include a username and a temporary password.

Third-party Representative:

Access the TFW Web Service

Employers and third-parties representatives can access the TFW Web Service, by entering the username, temporary password and activation code they receive from Service Canada. After the account is completely activated, they may access the system.

The Guided Tour can be consulted any time by users to help them navigate through the system and complete online LMO applications.

Effective April 25, 2012, Human Resources and Skills Development
Canada (HRSDC)/Service Canada is implementing a new Accelerated Labour
Market Opinion (A-LMO) Initiative. This new Initiative applies to
employers hiring temporary foreign workers in higher skilled positions
such as: management, professional and technical occupations. However, at
the present time, the Initiative does not apply to the Seasonal
Agricultural Worker Program, the Agricultural Stream and occupations in
the film and entertainment sectors.

NOTE:
The Initiative is currently not implemented in the province of Quebec.

The 2 main objectives of the new A-LMO Initiative are:

improving the integrity of the Temporary Foreign Worker Program and labour market outcomes;

responding to the employers' need for more efficient and timely LMO processing.

To be eligible to participate in the A-LMO Initiative, employers must:

have been issued at least 1 positive LMO in the previous 2 years;

have a clean record of compliance with the Program within the last 2 years;

not have been the subject of an investigation, infraction or a serious complaint; and

not have any unresolved violations or contraventions under provincial laws governing employment and recruitment.

This new A-LMO
Initiative introduces efficiency measures by reducing the amount of
paper-burden on employers in the application process, and by introducing
attestations for specific assessment criteria that can be reviewed
through a subsequent compliance review. In addition to the
attestation-based assessment, HRSDC/Service Canada will provide an A-LMO based on:

the genuineness of the job offer;

the wage offered to the temporary foreign worker;

whether the job offer is likely to fill a labour shortage.

If the employer is deemed eligible, HRSDC/Service
Canada will issue an opinion, within 10 business days, based on the
employer’s agreement to follow the necessary Program requirements and
the A-LMO assessment criteria. In addition, employers may want to register for the TFW Web Service to be able to apply for the A-LMO online.

Effective April 1, 2011, HRSDC/SC will add the following evaluations to the Labour Market Opinion (LMO) process:

assessment of the genuineness of the offer of employment and

whether or not, over the past two years, employers who
have hired foreign workers, provided wages, working conditions and
employment in an occupation that were substantially the same as those
listed in the offer of employment.

Note: For LMO-exempt work permits, these assessments will be completed by Citizenship and Immigration Canada (CIC) or the Canadian Border Services Agency (CBSA).

Making a permanent job offer to a Skilled Worker can be an effective
way to fill a full-time position in your company and bring needed skills
to Canada.

If you plan to hire a Skilled Worker for a permanent position in your
company, and at the same time, strengthen his/her application for
permanent immigration to Canada, you can choose to:

A positive LMO is one requirement that Citizenship and Immigration Canada (CIC) considers when deciding to issue a work permit allowing the person to work in Canada. At the same time, a positive LMO, the work permit, and your permanent job offer also strengthen the worker's application for permanent residency to Canada.

A
positive AEO supports the immigration of a Skilled Worker to Canada and
is one factor that CIC considers when reviewing an application for
permanent residency. Please note that an HRSDC AEO only supports
the person's application for permanent residency, but will not result
in CIC issuing a work permit and does not allow the person to work in Canada before receiving his/her permanent residency.

Some countries may require that their citizens meet certain
conditions if they want to work in Canada (e.g. approval to leave the
country, employer to pay transportation costs and/or medical coverage).
Ask the foreign worker to verify if additional conditions apply in
his/her country, contact the country's consulate in Canada or check its
website to find out if you must meet additional requirements.

Effective March 25, 2011, a new form will be available for employers
to apply for an arranged employment opinion (AEO). After March 25, 2011,
any employer submitting an application for an AEO must use the new form; otherwise it will be returned requesting to submit the new AEO form.

Hiring Steps

Make a permanent offer in a skilled occupation to the Skilled Worker and submit an application for an Arranged Employment Opinion - Updated (EMP5275)

Tell the Skilled Worker to include your written permanent job offer and the AEO letter of confirmation with the permanent resident application, along with other documentation required by CIC.
The application is point-rated and these documents improve the Foreign
Worker's score and the opportunity to receive a permanent resident visa.

- Grant points under the "Arranged Employment" and review all other Skilled Worker criteria;

- Give the Skilled Worker a permanent resident visa.

Arranged Employment Offer (for FSW Applications) - It may or may not be evident that an applicant has an arranged employment offer.

Pursuant to R82(2)(a) an arranged employment offer, along with the work permit, will be accompanied by a Labour Market Opinion (LMO) provided by Human Resources and Skills Development Canada (HRSDC)/Service Canada. In this case, it will be evident that there is an arranged employment offer.

Pursuant to R82(2)(b) an arranged employment offer, along with the work permit, will be LMO-exempt.

Please refer to policy manual FW 1 for exemption codes. In this case an applicant will not be able to provide documentary evidence that the work permit was issued per R204(a), R205(a) or R205(2)(c)(ii).

This can only be verified by checking the exemption codes in FOSS in the document details.

For SW2 (arranged employment offer) proof of the arranged employment offer (AEO) must be included in the application.

The AEO must still be valid at the time of final determination of eligibility and should be sufficiently detailed to support the claim that an offer of employment has been made to the applicant on an indeterminate basis.

The AEO should include the employer’s name, address, phone number and any other contact information.

If the applicant has a permanent job offer confirmed by Human Resources and Skills Development Canada (HRSDC)/Service Canada, a photocopy of the confirmation which was sent to the employer should also be included.

Visa officers should be able to use tools such as on-line directories or open source materials to confirm the existence of the employer. The visa officer should corroborate the information about the employer with any NESS employment validations that might exist in CAIPS.

Instructions for employers:

To assist your company in the application process, below is a description of the factors that Human Resources and Skills Development Canada (HRSDC)/Service Canada takes into consideration when making an Arranged Employment Opinion (AEO).

Submitting a complete application and providing information on these factors can result in faster decisions by HRSDC/Service Canada and Citizenship and Immigration Canada (CIC) officers and reduce delays in the recruitment of your skilled worker.

When assessing a job offer, HRSDC/Service Canada considers primarily:

the occupation that the skilled worker will be employed in;

the wages and working conditions offered;

the genuineness of the offer and employer history; and

if the offers are permanent, full-time, and non-seasonal.

Also, please be aware that there are special considerations if you are planning to offer a position to a skilled worker in a regulated occupation.

Occupation

HRSDC/Service Canada and CIC use the National Occupational Classification (NOC) system to categorize the job you are filling based on the majority of duties you identify. HRSDC/Service Canada also uses the NOC to identify wages when assessing the job offer.

The NOC can help you as an employer more accurately describe the duties and identify the occupation that the foreign worker is expected to perform.

Wages and Working Conditions

HRSDC/Service Canada reviews the wages that you are offering the skilled worker, and compares them to wages paid to Canadians in the same occupation based on labour market information from Statistics Canada, HRSDC/Service Canada, provincial ministries, and other reliable sources. If you are offering wages below rates paid to Canadians in the occupation, HRSDC/Service Canada will not confirm your job offer.

HRSDC/Service Canada also expects you to provide working conditions that are consistent with federal and/or provincial standards for the occupation and workplace.

Genuineness of the Offer and Employer History

To ensure that an offer is genuine in order to grant points towards the skilled worker's permanent resident application, HRSDC/Service Canada and CIC need to be certain that you will employ the skilled worker if he/she becomes a permanent resident of Canada.

The offer of permanent employment to the skilled worker must be submitted to HRSDC/Service Canada on company letterhead signed by the person responsible for hiring employees. The letter of offer must state that the offer to the skilled worker is permanent/indeterminate, describe the occupation and duties expected from the skilled worker and the salary to be paid to the prospective employee.

You, the employer, need to provide evidence to HRSDC/Service Canada that the business has been in operation for more than one year by submitting business licenses, CRA T4 Summary of Remuneration Paid, or commercial lease agreements for the business location. You also need to be prepared to show that you have employed workers for more than one year by submitting Canada Revenue Agency PD7A remittance forms outlining employee deductions for the last 12 months. PD7As and T4 Summary of Remuneration Paid forms showing deductions such as Canada Pension Plan/Quebec Pension Plan, income tax deductions and Employment Insurance premiums paid by both the employee(s) and the employer. PD7A and T4 summary forms are required to help demonstrate that an employer-employee relationship exists and that the firm has had a minimum of one worker on payroll over the last twelve months.

Once HRSDC/Service Canada has confirmed your offer, tell the skilled worker to include your written offer of permanent employment and the HRSDC/Service Canada Arranged Employment confirmation letter with the permanent resident application, along with other documentation required by CIC.

Please note, that Placement Agencies, Temporary Help Agencies and firms of a similar nature which act as an intermediary, referring workers to employers, cannot be considered the employer of record for the purposes of Arranged Employment unless they are establishing an employer/employee relationship with the skilled worker.

Please note that CIC reserves the right to contact you, the employer, before issuing a permanent resident visa to determine if the offer is still valid.

Permanent, Full-time, and Non-seasonal Offers

Please be aware that HRSDC/Service Canada will only confirm offers that are:

Permanent: the offer has no predetermined end date.

Full-time: the foreign worker is expected to work at least 30 hours a week on an average. week (with the exception of specific occupations like pilots that have detailed definitions of full-time work).

Not seasonal: the foreign worker is expected to work year around, and not be laid off due to seasonal \ patterns of employment.

Immigration Note:

A permanent job offer does not allow a foreign national to immigrate to Canada. Before a foreign national can become a permanent resident of Canada, they must:

Regulated Occupations

Please be aware that CIC will not award "Arranged Employment" points to the skilled worker applicant if the skilled worker does not meet certification and licensing requirements for regulated occupations in Canada (e.g. doctors, engineers, trades). Making the necessary arrangements with the regulatory body for certification and licensing is the employer's and the foreign national's responsibility.

To learn more about the requirements to work in specific regulated occupations in Canda, visit Working in Canada.